South African retailer Truworths International Ltd on Wednesday flagged a decline in full-year earnings of as much as 33%, blaming the impact of the COVID-19 pandemic.
The owner of YDE clothing stores said for the year through June 28, headline earnings per share (HEPS) – South Africa’s main profit gauge, stripping out some one-off items – is likely to fall 28% to 33% from the 580 cents reported a year earlier.
The retailer also impaired the carrying value of trademarks and right-of-use assets relating to store leases of British footwear unit Office, resulting from the “impact of the difficult trading environment on the profitability and liquidity of Office”.
Total non-cash impairment charges – excluded from HEPS – amounted to 131 million pounds ($173.55 million).
